New Payment Service Regulations Bolster the Kingdom’s Financial Sector

The Saudi Arabia Central Bank (SAMA) has issued fresh regulations for payment services, which promise to elevate international investments in the nation’s economy. This move comes after the Law of Payments and Payment Services took effect in February 2022, underscoring Saudi Arabia’s commitment to refining and expanding its payment offerings.

These enhanced regulations are expected to propel Saudi Arabia’s strides towards aligning with international benchmarks across all economic sectors. The emergence of these guidelines is timely, coinciding with the nation’s remarkable growth in the financial realm in 2023. With clear regulations in place, more businesses are anticipated to establish their footprint in the country. Furthermore, in the broader scope of Saudi Vision 2030, which aims to diversify the national economy, these rules are set to foster innovation, intensify competition, and accelerate the roll-out of state-of-the-art payment solutions tailored to customer needs.

Key features of these regulations include the establishment of a robust regulatory framework detailing licensing, oversight, and supervisory procedures for payment service providers in the Kingdom. The regulations also address potential risks to the payment and settlement sector, ensuring financial stability.

SAMA’s updated regulations enumerate 12 payment service activities under its purview. Notably, ‘Aggregated payment services’ and ‘payment account services’ mark their debut in the list, while ‘money remittance’ transitions from a licensed activity to a ‘related payment service’. With these new rules in effect, businesses in Saudi must familiarize themselves with the licensing prerequisites, ensuring compliance with regulated activities. Upon obtaining a license, SAMA will subsequently feature the licensee’s general details on its public register.